2007_02_01_archive

Local Government Tax Shell-acking Game

The people of New Jersey spent $38.2 billion for local government in

2006. That's the total amount spent for all public schools, municipal

and county governments in the state. It breaks down to $4,378.44 for

every man, woman and child in the Garden State.

Property taxpayers paid $20.9 billion of the total tab for local

government, of which $15.4 billion was picked up by homeowners. State

taxpayers contributed $13.3 billion and other local and state revenue

sources funded the remaining $4 billion.

This means homeowners paid 40.3 percent of the cost of local

government in 2006 before receiving direct property tax relief of $1.7

billion in the form of property tax rebate checks and credits. Of

course state taxpayers paid for this property tax relief program too

while the cost of local government remained unchanged at $38.2

billion.

The system for financing local government in New Jersey is one very

complicated shell game. The object of the game is to spend as much as

you dare while getting the other guy to pay for it. We'll show you how